INVESTIGATING THE IMPACT OF IT DEVELOPMENT AND EDUCATION ON ECONOMIC DEVELOPMENT OF ASIAN COUNTRIES

Abstract

This study presented an approach to investigate the impact of information technology development on economic growth. In this model, the sum of product trade flow logarithms, real business flow logarithm and an error correction term that has a normal distribution are considered. Asian countries are investigated in presented study. The results indicate that the information technology variable in the studied Asian countries, considering fixed effects model has negative effects on economic integration for Iran and India. Although, information technology in China has positive coefficient, but it is not significant; however, it is positive and significant in countries such as Japan, Taiwan, etc. In the least integrated squares model, all coefficients of the countries involving China, Saudi Arabia and Nepal are positive and from the point of view of being significant, the coefficient of information technology can be considered significant. Therefore, to reduce the created distance between Asian countries considering economic growth, as well as the reduction of this distance with European and American countries, the governments of these countries should invest in the field of information technology infrastructure and develop both hardware and software platforms, while allocating more financial resources in this regard.